I was aware that they are doing more infill drilling at Masato and that the underground ore at G is not included so they have some 0.46m ounces of open pit ore at 2.24 gms/tonne. That may last them around 3-4 years so long as they they mix it with lower grade ore from other pits, but after that the average ore grade would probably drop down to around 1.4 grams/tonne (or less). The ore from TZG's Gora deposit will also add some highgrade ore for around 2 years, but it needs a lot of additional capital expenditure.
Masato had better deliver at around 2 gms/tonne or they have screwed up on the takeover deal. What has happened there suggests a lack of due diligence and poor quality advice from their in-house geos, who have proven to be unsuccessful in the past with their exploration efforts despite spending over $40m 1-2 years ago.
The reaction to the announcement was positive overall with a CAD9 cent rise in the share price to CAD84 cents so I suppose we could see 85-86 cents here today.
loki
TGZ Price at posting:
79.5¢ Sentiment: None Disclosure: Held