Exactly! Suggests to me that MC wants the PFS to look as big and as good as possible prior to potential bids! Whilst we wait for the PFS we might as well get on with more drilling now that we are fully funded.
I thought Mark may go down this route now, with the fund raising completed. I wonder why he wants to shore up a larger resource into the PFS right now, when it could have just been done further down the line.
Condor Pre-Feasibility Study and Updated Preliminary Economic Assessment: Timing
Condor (AIM:CNR), a gold exploration company focused on delineating a large commercial resource on its 100%-owned 2.4M oz gold deposit at La India Project in Nicaragua has previously stated that a Pre-Feasibility Study ("PFS") on La India open pit would be released by the end of September 2014. The scope of work for the proposed PFS was based only on La India open pit Indicated resources of 840,000 oz gold at 3.1g/t.
In order to show the potential of the 2.4M oz gold La India Project, the scope of work was increased to include a Preliminary Economic Assessment ("PEA") on two additional scenarios. 1) La India open pit and two feeder pits which contain Indicated and Inferred open pit resources of 1.08M oz gold at 3.1g/t and 2) the La India open pit, two feeder pits of 1.08M oz gold at 3.1g/t plus underground mining resources of 489,000 oz gold at 5.31g/t on La India and America veins, with combined Indicated and Inferred Resources of 1.57M oz gold at 3.72g/t.
The expanded nature of the studies, both to NI 43-101 standards and resultant increased scope of work has meant that quotations from potential suppliers of capital equipment and operating services in Mexico and Central America, while in progress, have not been received. Consequently, the PFS and PEAs will take approximately one month longer than anticipated. The Directors remain of the view that La India Project will be an economically viable project with robust economics given the high-grade nature of the ore body and low cost mining jurisdiction.
A share price reflects market expectation of future cash flows, unless it’s on AIM , then its more expectation of news. CNR’s imminent news is the release of the PFS, but as the market pretty much knows the high level figures, I do not believe this will move the SP much – it will probably drop.
Im sure the vast majority of long termers amongst us are in CNR on the “expected news” of the company being bought – this would be at a price that reflects of future cash flows on the project, discounted for how far down the line we are with proving reserves. Although I am getting more used to the idea of CNR raising the capital (via IFC) to at least start mining the open pit reserves, this will mean CNR will become a proper company with measureable profitability, thus commanding a more stable (and higher) SP.
For me the next big news, which is indeterminable at this point so cannot be fully priced in, is whether or not the IFC will decide to take up the subscription offer after their DD. This would be a huge vote of confidence for the project, and for me a game changer. I understand the option to subscribe closes at the end of October 14.
Lets hope the PFS is released soon so we can get on with the project – enjoy the ride!
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