First of all, the 104M ounces number is in the report for 'information' purposes only and should not be uses - as per report. Actual number is 85M ounces Inferred and 96 if base metals can be profitably extracted. Problem there seems to me to be low Cu versus Pb/Zn values. So I think one should use the 85M ounces Inferred and 3,7M Indicated numbers.
Infill drilling is required at 30m intervals which will prove to be a problem converting entire Inferred to Indicated. the mineralisation extends over 7km so that suggests just under 200 drill holes to convert all of it. By counting 250k$ per drill hole I'm way too cheap, but that's about 50M$ drilling budget to convert the entire deposit's status.
Therefore they suggest starting with only part of it.
Management is acting accordingly, drilling on two places, the Clavo and the Guazapares structure.
Environmental studies should begin because of drilling history and risks concerning subsurface disturbances.
Also, there seems to have been an attempt on heap leaching which failed and might contain quite some enviro-trouble.
Also some technical procedures have to be adapted and some 20% of database confirmed because of manually entered data.
All in all, lot's of work and not for sale in the immediate future imo.
Problems: Inferred resources, Possible environmental liabilities from the past, Metallurgy unclear, Database might contain mistakes,
those 4 things have to be answered/remedied before any major would put his money on the table.
Good: Room to expand deposit.
Do not hope for a sale in the short term, all I can say,
Regards.
AI
