yeeew87, The issue is what the grade of the reefs are. If they...

yeeew87,

The issue is what the grade of the reefs are. If they can show the grades are higher than what the initial ore reported (3g/t) then they will be able to raise money - admittedly at a very dilutive price. If the grade turns out to be 3g/t ORS is toast as the mine will be unprofitable and there will be no scope for a capital raising. That's the risk here ...

It's a binary outcome in my view. If the reefs grade at 6-8g/t headgrade to the mill then the company is worth more than the current EV of $4.3m. If it turns out to be 3-4 g/t then ORS will not be worth anything - a stranded old mill and two uneconomic, small gold deposits. Maybe worth a little as an option on a much higher gold price in the future ...

Cheers
John