David Young has just returned from DRC earlier this week. He and others went there to complete an "optimisation" study. With cu price the way it was up until recently they hoped to pick up plant much cheaper and less sophsiticated than indicated in the DFS. They are in talks with bankers in J'berg as well. There will be ann. towards the end of this month. I just hope they don't do a rights issue, as I do not think the few million $'s they have left will last too many months longer based upon their current salary commitments. $US1.50lb cu price is about break even for TGS due to such high grades. With stimulus packages for infrastructure being announced in China and USA we may see the cu price back over $US2lb. That is when TGS will be making more serious coin. It is still possible for the mine to be in production by Christmas this year. Albeit unlikely. Don't be surprised if the "final" negotiations with the DRC/Gecomines changes somewhat in TGS's favour. Anything below .15cents represents excellent value for TGS atm as their project is still an outstanding one with a greater degree over surety over the lease. We were all hanging out for the commitment 9 months ago from the DRC when the sp was around .50cents. Well we now have it and the sp is around .10cents. Mind you the cu price was a lot higher back then but the sp has lost all perspective as has most speculitive mining stocks over the past 9 months. I feel the market will rerate TGS in the not too distant future. Cheers! Stumpy.
TGS Price at posting:
11.0¢ Sentiment: ST Buy Disclosure: Held
