Saying that power is not going to affect the cost of the mine is complete nonsense. With diesel power generation the power cost alone would be 30% of their operating costs, so it is a big factor. Eve with a direct shipping operation they are going to need to raise the CAPEX to build the mine. There still needs to be accommodation on site, some on site screening of the ore, barging facilities, haul roads built, trucks and diggers purchased, etc. With most likely a sub 1% deposit at San Jorge, they will not be able to raise the funds needed for the CAPEX to put San Jorge in production. Even before they get to that stage AVQ will need to complete some form of feasibility study as without it they will not be able to raise the CAPEX financing. The issue now for them is that they clearly can not raise the money needed for a Feasibility Study. San Jorge is a lot cause now due to its low grade. AVQ needs Isabel back without it they have nothing.
AVQ Price at posting:
13.5¢ Sentiment: Hold Disclosure: Not Held
