Response from JB

Companies response to some of my questions:

“As we have seen from last year, great drill results have a marginal impact on the share price. (Last year we put out the 28g/t over 28m and the stock went up 5% that day and back down lower the next day.4000m of drilling will require additional funding of approx C$1.5m. It would be very dilutive to raise this drill money at the current price. We would spend this money in 2 months of drilling then have to come back to the market for more Better to see how the resource looks and hopefully will be positive and reflected in a higher share price, then move forward.Team is on site now working on structural study to try and figure out what is happening with the blue vein no 9 area. We could rush a resource out without this but the resource geo will heavily discount the potential (indicated and inferred) of those veins. Hope this helps.”

And in response to my follow up email:

“Once we have a positive PEA in hand we will definitely look for non equity options for funding. With a viable PEA with cash flow on the horizon the world of financing will open up: royalties, debt, project finance, strategic partners etc. We are warming up some potential strategic partners now.The MRE will include all categories ie measured (unlikely at this time), indicated and inferred. The % of indicated versus inferred will be important for confidence.Thanks for your support.”

So basically MRE was held off because without the structural study of no.9 and blue veins, the contained resources would be significantly underrepresented. Doesn’t want to dilute at these prices, conserving cash hoping a positive MRE will rerate the share price. Once PEA is finished will look at other funding options to minimize dilution. MRE will contain both indicated and inferred ounces, there has been some confusion on the board regarding this. IMO with a positive Elizabeth MRE(anything in the range of 200,000 indicated, and maybe another 100,000-200,000 inferred) this will move fast, but with an underwhelming one it may be painful getting enough cash to prove the resource.
Cheers, and GLTAL