Groundhog I completely agree with unhedged position, my note merely points out that the reserve resources released in April showed a reduction in both reserves and resources, Royale Crown Vein was down graded by 75%. If I compare diamond drilling metres with last years it is lower. To me this would indicate reserves and resources will probably be lower next year. The quarterly reports also indicate there is not much happen at Royale Crown vein and not much happening outside the resource drilling at CoO. This is all in the reports which should be factual and true as you imply.
From this I do state my opinion that they probably have a current mine life if somewhere between 3 and 5 years, 3 years to mine the known reserves, 5 years with a bit of success finding more reserves. I also think that if they continued with the low exploration drilling rate they are unlikely to find any significant extensions or new ore bodies.
Yes they have announced the decline, but were silent on the financials to pay back the cost and add profit. What does this mean? I am not sure so haven't previously made any comments about it.
Yes these are my opinions, but it is based on information from the company reports and my experience. They are making good money now, they should continue to make good money with a high gold price but there is uncertainty about the mine life and how long they can continue to make money.
The above comments are base on my research and opinions, use it at your own risk or ignore it.
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