I've been looking at silver stocks for awhile as part of the...

I've been looking at silver stocks for awhile as part of the gold/inflation type theme and have chosen ARDO as my exposure. Large deposit which they have just moved to 100%% ownership of, the deposit is low grade but shallow so does not require much so the strip ratio is reasonable and is open at depth with previous drilling only done to about 60m with the deposit 3km long.
Reason for investment 1) Silver price has doubled recently and share price has been flat over the period.
2) Strike price of the options have been reduced they are in the money currently and represent huge leverage on any increase in the share price. The strike price was reduced as they sold of a gold deposit and did an in specie distribution of shares in the acquiree.
3) Previous feasibility study was done at silver prices half what they are currently. Potential for a massive resource upgrade simply by accepting a lower cut off grade and from the additional drilling. An update is expected in June before option expiry, likely designed to keep them in the money as they will other.
Initial scoping study was for a 600ktpa plant, with a 1000ktpa plant then modelled and the DFS expected to be completed in Dec11 is for a 1.5Mtpa plant, the timelines have slipped as the DFS was previously expected earlier

I've only really found 4 pure silver plays, this is probably the furtherst from production, but hasn't been rerated like the other as it previously was developing a smallish gold mine cast off from Barrick in tandem with the silver exploration. I wish I had an order in yesterday to mop up the person who dumped his oppies, there was about 900k in the queue which got dumped at the close, was waiting for them to decrease their asking price before buying in. Don't know why they chose to work their order that way, there are only 40m oppies in total and 80m shares so they couldn't have expected that the liquidity could handle that, I probably need a broker so I can place a pyramid order, the difficulties of being a retail investor. Must have needed some cash quick.
Big risk as the share price only has to drop 10% for the oppies to be OTM, but silver price has gone ballistic, which should eventually be reflected in the share price and resource upgrade is expected before option expiry date.