The studies have been done to support that view - soil sampling, geometrics and most importantly the structural survey done by a leading expert. Obviously it is just opinion at the moment until proven by the drill bit, but the studies point to the resource potentially being 10m oz.
Presumably that is why Mark and his team in Nicaragua are spending so much time and effort on precisely these matters, which he always seems to be at great pains to spell out. As far as I can tell the company seems to be doing all the right things in a very comprehensive way which should be applauded - I suspect many companies don't.
MC is the epitomy of conservative, so for him to even suggest a 10m oz district is significant. I suspect Ross Beaty also has a view about that, having looked at much data with his expert team. And he has probably taken into account mineability.
Whilst we all hope for the best, you have to take the 10m oz comment with a bit of salt. Yes there is a big deposit in La India, but how much is mineable depends on the way it is mined, that hasn´t been defined yet. The project is in the early stages of rural land purchase and has only just begun to throw out the idea to the local populace of La India village relocation. That will dictate whether the main La India pit is 100% open pit, part underground etc... Firstly, the village has to agree in a public consultation to the mine and village relocation, the village is less than 50 yards from the full size open pit, so it would have to be moved for the full potential of the mine to be realised. This is regardless of whether an favourable EIA is secured or not. The government are especially touchy on the subject this being an electoral year. Once mining starts underground, gold recovery drops and obviously becomes more expensive.
Plus Mark mentioned again 10 million oz potential of the district, that is going to turn some heads and we know he wouldn't throw that statement around if he didn't think the evidence gathered so far supported it. That's also going to affect the price he's willing to sell for. We're getting closer by the day!
Good presentation. What I am struck by is just how thorough and detailed the work is that is going into getting the permits. It is taking time but once we get the permits the project is going to be not far off fully derisked and a future buyer/partner will be able to come in, confident, that they are getting what it says on the tin! That high level of confidence in the veracity of the work that has been done should ultimately be reflected in the price Mark is able to achieve.
Nice find! Highlights the significance of Ross Beaty picking out CNR to invest in (he usually invests in Canadian stock)! Also the speaker talks of an emerging bull market in gold stocks and how that is being reflected in some big daily rises in explorers coming out with decent drill results etc. The tide is hopefully now turning in our favour.
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