My general take on things.
Pros for sticking with the company:
- Drilling two properties
- One incredible drill hit can radically change things
- 43-101 eventually due, with rising resources expected
- At TPW, we have found a lot of smoke, but no fire. This raises the possibility, in an unclear way, that we will find the fire.
- We will likely increase our resources further with the current drilling at TPW. Maybe we get to 2M oz. or close to it, with this wave of drilling. (This seems iffy to me, but I suppose it is possible.)
- Incredible infrastructure near TPW makes a take-out highly likely if we get an incredible hit while drilling.
Cons to avoid the company:
- The entire junior mining market is under extreme pressure. This will probably make any good news moot. It will not make incredible news moot, however.
- The updated 43-101 will likely not be incredible news. It will probably only be good news.
- An incredible drill hit is as likely as finding a needle in a haystack - extremely unlikely.
- We only have a few million dollars. In about 6-8 months or less we will probably be out of money. After that, we will have to sell more stock. This probably means much lower prices (price cut in half?).
- TPW seems to have a lot of their resources at depth, which is expensive to drill. We need a mega hit, similar to LSG, to make it worthwhile. A mega hit would be high or good grade over 25m.
- It appears there is a lot of gold/silver supply coming onto the market over the next few years due to increased production/development to meet the increased gold/silver prices. I need to research this further, but it may mean the gold/silver price may not move up much over the next few years. It is hard to say, but if there is significant supply coming onto the market, it will put pressure on the gold/silver price. Sustained pressure may reduce further interest in the sector.
FWIW. I'll stick with the wild gamble of finding the fire at TPW or making a lucky hit at KC. That's what makes investing in these kinds of stocks fun. They are wild gambles and can be an incredible roller coaster ride if risk is managed correctly.
